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Research in Motion Company Analysis - Assignment Example

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Table of Contents RIM – Blackberry Smartphone 2 MICRO ANALYSIS 2 a)Demand Factors: 2 a)Supply Factors: 3 b) Market Structure 4 c) Future Potential for market 4 d) Elasticity concept 4 e) Efficient Resources 5 MACRO ANALYSIS 5 i)The economic growth 5 ii) Unemployment 6 iii) Inflation 6 iv) Balance of Payments 6 v) Business Cycle 7 References 8 Appendix 9 RIM – Blackberry Smartphone Research in Motion (RIM) is the maker of the successful line of smartphones popularly known as Blackberry smartphones…
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Download file to see previous pages MICRO ANALYSIS a) Demand Factors: The factors that affect the demand for Blackberry greatly vary from country to country since the customer’s preferences and their association with certain brands change based on their perception. According to the study, the share of RIMs worldwide sales of smartphones declined to 14 percent in the period last quarter of 2011 compared to last quarter sales of 20 percent for the same period. On the other hand, Apple’s share remained stable at 16 percent while Android was able to drastically lift its sales almost threefold to about 33 percent. (Miller, 2011) This was mainly due to the fact that the demand for Blackberry devices fell sharply during the last year owing to the success of its competitors. The unprecedented success of Samsung Galaxy S2 coupled by the low prices other Android phones were available in the market; Blackberry’s sales were badly dented. Therefore, the competitors’ factor played a crucial and a significant role in determining the demand for Blackberry devices. ...
uth shift to smartphone devices, the competition will only toughen and with new and cheap competitors emerging from all parts of the world such as ZTE and Huawei from China, Blackberry will have to rethink its strategy to sell high-end phones to elites since now even the middle class wants to buy such phones. Although, the distinctive feature of Blackberry that resulted in high demands initially namely the BBM service has now been overcome by software’s like Whatsapp and Viber which offer similar services free of charge. Moreover, among the customers who were interviewed to inquire about their preference for buying a new phone in the next 90 days, only 6 percent stated their inclination towards Blackberry devices. Their main comment was that Blackberry has lost its competitive edge both in its shape and appeal. They complained that the bulkiness of the set and the loss of its distinctive feature have contributed to this disliking in the recent past. (Evan, 2010) a) Supply Factors: In comparison to this, the supply of Blackberry devices has increased in the past year since the analysts predicted future growth. Factors affecting supply are the demand itself and the price of the device. Other important factors include the technology and raw materials. Materials required for such a device are very unique and expensive, for example, cameras, LCD screen and processors. Therefore, being a company located in Canada, it has generally good access to the most essential raw materials although at times it has to import these materials from other manufacturers who have firm control over these resources in various parts of the world. Blackberry also holds an advantage since RIM is the sole manufacturer of its devices, therefore, they pay special attention to its hardware and the ...Download file to see next pagesRead More
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